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The Following Information Was Drawn from the Year-End Balance Sheets

Question 67

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The following information was drawn from the year-end balance sheets of White,Inc.  Bonds payableCommon stockTreasury stockRetained earnings2014$200,000112,50017,50035,0002013$275,00087,50012,50027,500\begin{array}{l}\begin{array}{|l}\hline\\\hline \text { Bonds payable}\\\hline \text {Common stock}\\\hline \text {Treasury stock}\\\hline \text {Retained earnings}\\\hline\end{array}\begin{array}{|l}\hline 2014 \\\hline \$ 200,000 \\\hline 112,500 \\\hline 17,500 \\\hline 35,000 \\\hline\end{array}\begin{array}{|l|}\hline 2013 \\\hline \$ 275,000 \\\hline 87,500 \\\hline 12,500 \\\hline 27,500 \\\hline\end{array}\end{array} The amount of net income shown on the 2014 Year 2 income statement was $17,500.There was no beginning or ending balance in the Dividends Payable account.What is the amount of cash outflows for dividends?


A) $7,500
B) $25,000
C) $17,500
D) $10,000

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